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Helen of Troy Limited Reports Third Quarter Fiscal 2023 Results

Consolidated Net Sales Decline of 10.6%

Core Net Sales Decline of 10.0% From Fiscal 2022; Growth of 23.9% From Fiscal 2020

GAAP Diluted EPS of $2.15; Core Adjusted Diluted EPS of $2.75

Core Adjusted Diluted EPS Decline of 26.1% From Fiscal 2022; Decline of 7.7% From Fiscal 2020

Updates Fiscal 2023 Net Sales and Diluted EPS Outlook:

Consolidated Net Sales to $2.025-$2.050 Billion

Consolidated Diluted EPS to $4.82-$5.11; Consolidated Adjusted Diluted EPS to $9.20-$9.40

Provides Update on Project Pegasus

Helen of Troy Limited (NASDAQ: HELE), designer, developer and worldwide marketer of consumer brand-name home, outdoor, health, wellness, and beauty products, today reported results for the three-month period ended November 30, 2022.

Executive Summary – Third Quarter of Fiscal 2023 Compared to Fiscal 2022, Fiscal 2021 and Fiscal 2020

  • Consolidated net sales revenue was $558.6 million, a decrease of 10.6% from fiscal 2022, a decrease of 12.4% from fiscal 2021, and an increase of 17.7% from fiscal 2020
  • Core business net sales decrease of 10.0% from fiscal 2022, a decrease of 9.6% from fiscal 2021, and an increase of 23.9% from fiscal 2020
  • GAAP diluted EPS of $2.15, compared to $3.10 for the same period last year, $3.34 for fiscal 2021, and $2.71 for fiscal 2020
  • Non-GAAP Core adjusted diluted EPS of $2.75, a decrease of 26.1% from fiscal 2022, a decrease of 23.8% from fiscal 2021, and a decrease of 7.7% from fiscal 2020
  • Non-GAAP adjusted diluted EPS of $2.75, a decrease of 26.1% from fiscal 2022, a decrease of 26.9% from fiscal 2021, and a decrease of 11.9% from fiscal 2020

Julien R. Mininberg, Chief Executive Officer, stated: “While the operating environment remained difficult, our third quarter financial performance exceeded our expectations. Gross margin and cash flow improved significantly during the quarter, and our efforts to reduce inventory have resulted in inventory levels that are now below where we finished last fiscal year. On a fiscal year-to-date basis, core net sales are up 33.1% on a three-year stack vs. the pre-Covid base of fiscal year 2020. Over those same nine months, core adjusted diluted EPS is up 6.6% on a three-year stack despite the negative impacts this fiscal year from inflation, higher interest rates, and lower operating leverage.”

“Regarding our outlook for this fiscal year, we are raising the bottom of our range for both sales and adjusted EPS. Consumption remains soft in certain of our categories and some retailers are continuing to reduce their orders as they sell down their inventory. We are, however, encouraged to see trade inventory at some key retailers start to better align with sell through, as well as stabilization and modest improvement in market share for certain categories such as Beauty appliances.”

Mr. Mininberg continued: “During the quarter, we made significant progress on each of the workstreams comprising Project Pegasus. Under the organizational workstream, today we are announcing three major changes intended to streamline and simplify the organization. First, we are combining Beauty and Health & Wellness into a single reportable segment that will be referred to and reported as “Beauty & Wellness.” Second, we are creating a North America Regional Market Organization (RMO) that will be responsible for sales and go to market for all categories and channels in the United States and Canada. Third, we are further centralizing certain functions under shared services, especially in Operations and Finance. Consistent with our strategic choices throughout the transformation, our business segments will be even more focused on brand development, consumer-centric innovation and marketing. The RMOs will execute on go-to-market strategies and shared services will be even more centralized. We believe these and the other Pegasus workstreams will increase our effectiveness and the savings will provide fuel to reinvest in returning to growth under our value creation flywheel.”

 

 

Three Months Ended November 30,

(in thousands) (unaudited)

Home & Outdoor

 

Health & Wellness

 

Beauty

 

Total

Fiscal 2022 sales revenue, net

$

246,135

 

 

$

203,900

 

 

$

174,849

 

 

$

624,884

 

Organic business (1)

 

(57,262

)

 

 

(22,046

)

 

 

(36,242

)

 

 

(115,550

)

Impact of foreign currency

 

(3,191

)

 

 

(1,371

)

 

 

(2,512

)

 

 

(7,074

)

Acquisition (2)

 

43,255

 

 

 

 

 

 

13,091

 

 

 

56,346

 

Change in sales revenue, net

 

(17,198

)

 

 

(23,417

)

 

 

(25,663

)

 

 

(66,278

)

Fiscal 2023 sales revenue, net

$

228,937

 

 

$

180,483

 

 

$

149,186

 

 

$

558,606

 

 

 

 

 

 

 

 

 

Total net sales revenue growth (decline)

 

(7.0

) %

 

 

(11.5

) %

 

 

(14.7

) %

 

 

(10.6

) %

Organic business

 

(23.3

) %

 

 

(10.8

) %

 

 

(20.7

) %

 

 

(18.5

) %

Impact of foreign currency

 

(1.3

) %

 

 

(0.7

) %

 

 

(1.4

) %

 

 

(1.1

) %

Acquisition

 

17.6

%

 

 

%

 

 

7.5

%

 

 

9.0

%

 

 

 

 

 

 

 

 

Operating margin (GAAP)

 

 

 

 

 

 

 

Fiscal 2023

 

13.5

%

 

 

11.8

%

 

 

16.8

%

 

 

13.8

%

Fiscal 2022

 

17.6

%

 

 

6.7

%

 

 

19.0

%

 

 

14.4

%

Adjusted operating margin (non-GAAP)

 

 

 

 

 

 

 

Fiscal 2023

 

17.4

%

 

 

11.8

%

 

 

21.1

%

 

 

16.6

%

Fiscal 2022

 

19.4

%

 

 

10.7

%

 

 

20.9

%

 

 

17.0

%

 
 

 

Three Months Ended November 30,

 

% Change

(in thousands, except per share data) (unaudited)

2022

 

2021

 

2020

 

2019

 

FY23/FY22

 

FY23/FY21

 

FY23/FY20

Consolidated net sales revenue

$

558,606

 

$

624,884

 

$

637,737

 

$

474,737

 

(10.6

) %

 

(12.4

) %

 

17.7

%

Core business net sales revenue (3)

 

558,606

 

 

620,509

 

 

617,766

 

 

450,742

 

(10.0

) %

 

(9.6

) %

 

23.9

%

Leadership Brand net sales revenue (4)

 

451,500

 

 

506,982

 

 

508,210

 

 

379,604

 

(10.9

) %

 

(11.2

) %

 

18.9

%

Online channel net sales revenue (5)

 

145,577

 

 

141,233

 

 

152,562

 

 

114,193

 

3.1

%

 

(4.6

) %

 

27.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Diluted EPS

$

2.15

 

$

3.10

 

$

3.34

 

$

2.71

 

(30.6

) %

 

(35.6

) %

 

(20.7

) %

Consolidated Adjusted Diluted EPS (non-GAAP) (6)

 

2.75

 

 

3.72

 

 

3.76

 

 

3.12

 

(26.1

) %

 

(26.9

) %

 

(11.9

) %

Core Adjusted Diluted EPS (non-GAAP) (3) (6)

 

2.75

 

 

3.72

 

 

3.61

 

 

2.98

 

(26.1

) %

 

(23.8

) %

 

(7.7

) %

 

 

Nine Months Ended November 30,

 

% Change

(in thousands, except per share data) (unaudited)

2022

 

2021

 

2020

 

2019

 

FY23/FY22

 

FY23/FY21

 

FY23/FY20

Consolidated net sales revenue

$

1,588,084

 

$

1,641,335

 

$

1,589,424

 

$

1,265,067

 

(3.2

) %

 

(0.1

) %

 

25.5

%

Core business net sales revenue (3)

 

1,588,084

 

 

1,611,098

 

 

1,526,995

 

 

1,193,454

 

(1.4

) %

 

4.0

%

 

33.1

%

Leadership Brand net sales revenue (4)

 

1,338,849

 

 

1,329,858

 

 

1,288,614

 

 

1,012,346

 

0.7

%

 

3.9

%

 

32.3

%

Online channel net sales revenue (5)

 

372,762

 

 

369,007

 

 

398,175

 

 

299,901

 

1.0

%

 

(6.4

) %

 

24.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Diluted EPS

$

4.45

 

$

7.52

 

$

9.14

 

$

6.15

 

(40.8

) %

 

(51.3

) %

 

(27.6

) %

Consolidated Adjusted Diluted EPS (non-GAAP) (6)

 

7.44

 

 

9.85

 

 

10.05

 

 

7.42

 

(24.5

) %

 

(26.0

) %

 

0.3

%

Core Adjusted Diluted EPS (non-GAAP) (3) (6)

 

7.44

 

 

9.67

 

 

9.58

 

 

6.98

 

(23.1

) %

 

(22.3

) %

 

6.6

%

During the fourth quarter of fiscal 2020, the Company committed to a plan to divest certain assets within its Beauty segment's mass channel personal care business (“Personal Care”). On June 7, 2021, the Company completed the sale of its North America Personal Care business and on March 25, 2022, the Company completed the sale of the Latin America and Caribbean Personal Care business. The Company defines Core business as strategic business that it expects to be an ongoing part of its operations, and Non-Core business as business or net assets (including net assets held for sale) that it expects to divest within a year of its designation as Non-Core. Accordingly, sales from the Personal Care business were included in Non-Core business for all historical periods presented. As a result of these dispositions, the Company no longer has any results of operations from Non-Core business or any assets or liabilities classified as held for sale.

 

Three Months Ended November 30,

(in thousands) (unaudited)

Home & Outdoor

 

Health & Wellness

 

Beauty

 

Total

Fiscal 2022 sales revenue, net

$

246,135

 

 

$

203,900

 

 

$

174,849

 

 

$

624,884

 

Core business (3)

 

(17,198

)

 

 

(23,417

)

 

 

(21,288

)

 

 

(61,903

)

Non-Core business (Personal Care) (3)

 

 

 

 

 

 

 

(4,375

)

 

 

(4,375

)

Change in sales revenue, net

 

(17,198

)

 

 

(23,417

)

 

 

(25,663

)

 

 

(66,278

)

Fiscal 2023 sales revenue, net

$

228,937

 

 

$

180,483

 

 

$

149,186

 

 

$

558,606

 

 

 

 

 

 

 

 

 

Total net sales revenue decline

 

(7.0

) %

 

 

(11.5

) %

 

 

(14.7

) %

 

 

(10.6

) %

Core business

 

(7.0

) %

 

 

(11.5

) %

 

 

(12.2

) %

 

 

(9.9

) %

Non-Core business (Personal Care)

 

%

 

 

%

 

 

(2.5

) %

 

 

(0.7

) %

Consolidated Results - Third Quarter Fiscal 2023 Compared to Third Quarter Fiscal 2022

  • Consolidated net sales revenue decreased $66.3 million, or 10.6%, to $558.6 million compared to $624.9 million. The decline was primarily driven by a decrease from Organic business of $115.6 million, or 18.5%. The Organic business decrease primarily reflects lower sales in all segments due to lower consumer demand, shifts in consumer spending patterns, reduced orders from retail customers due to higher trade inventory levels, the unfavorable comparative impact of approximately $15 million from earlier than typical customer orders in the third quarter of fiscal 2022 as retailers accelerated orders to try to avoid supply chain disruptions during the prior year holiday season, and a net sales revenue decline of $4.4 million in Non-Core business due to the sale of the Personal Care business. These factors were partially offset by the favorable impact of customer price increases related to rising freight and product costs, higher closeout channel sales in the Home & Outdoor segment and an increase in sales of humidification products in the Health & Wellness segment. The Organic business decline was partially offset by the contribution from the acquisitions of Osprey of $43.3 million and Curlsmith of $13.1 million, or 9.0% to consolidated net sales revenue.



  • Consolidated gross profit margin increased 2.1 percentage points to 45.9%, compared to 43.8%. The increase in consolidated gross profit margin was primarily due to a favorable mix of more Home & Outdoor sales within consolidated net sales revenue, a more favorable customer mix within the Home & Outdoor segment, and a more favorable product mix within the Beauty segment primarily due to the acquisition of Curlsmith. These factors were partially offset by a less favorable product mix within the Home & Outdoor segment due to the acquisition of Osprey and the net dilutive impact of inflationary costs and related customer price increases.



  • Consolidated selling, general and administrative expense (“SG&A”) ratio increased 0.9 percentage points to 30.3%, compared to 29.4%. The increase in the consolidated SG&A ratio was primarily due to unfavorable operating leverage, higher salary and wage costs, higher marketing expense, increased amortization expense, higher outbound freight costs, and higher share-based compensation expense. These factors were partially offset by a gain from insurance recoveries on damaged inventory of $9.7 million, reduced annual incentive compensation expense, the favorable leverage impact of customer price increases related to inflationary costs, a decrease in EPA compliance costs of $2.9 million, and the favorable comparative impact of acquisition-related expense incurred in connection with the Osprey transaction during the prior year period.



  • Consolidated operating income was $77.2 million, or 13.8% of net sales revenue, compared to $90.0 million, or 14.4% of net sales revenue. The 0.6 percentage point decrease in consolidated operating margin was primarily due to unfavorable operating leverage, restructuring charges of $10.5 million, the unfavorable impact of less Beauty segment sales within consolidated net sales revenue, a less favorable product mix within the Home & Outdoor segment due to the acquisition of Osprey, higher salary and wage costs, an increase in outbound freight costs, increased amortization expense, and higher share-based compensation expense. These factors were partially offset by a gain from insurance recoveries on damaged inventory of $9.7 million, reduced annual incentive compensation expense, a decrease in EPA compliance costs of $2.8 million, the favorable comparative impact of acquisition-related expense incurred in connection with the Osprey transaction during the prior year period, a more favorable customer mix within the Home & Outdoor segment, and a more favorable product mix within the Beauty segment primarily due to the acquisition of Curlsmith.



  • Interest expense was $13.1 million, compared to $3.2 million. The increase in interest expense was primarily due to higher average levels of debt outstanding, including borrowings to fund the acquisitions of Osprey and Curlsmith as well as construction of the previously-announced new distribution center in Tennessee, and higher average interest rates compared to the same period last year.



  • Income tax expense as a percentage of income before income tax was 19.1% compared to 12.9%, primarily due to lower forecasted annual income before income tax and shifts in the mix of income in various tax jurisdictions, which were partially offset by increased tax benefits for discrete items.



  • Net income was $51.8 million, compared to $75.7 million. Diluted EPS was $2.15, compared to $3.10. Diluted EPS decreased primarily due to lower operating income in the Home & Outdoor and Beauty segments, higher interest expense and an increase in the effective income tax rate. These factors were partially offset by higher operating income in the Health & Wellness segment and lower weighted average diluted shares outstanding.



  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) decreased 10.8% to $99.7 million compared to $111.8 million.

On an adjusted basis for the third quarters of fiscal 2023 and 2022, excluding acquisition-related expenses, EPA compliance costs, gain from insurance recoveries, restructuring charges, amortization of intangible assets, and non-cash share-based compensation, as applicable:

  • Adjusted operating income decreased $13.4 million, or 12.7%, to $92.7 million, or 16.6% of net sales revenue, compared to $106.1 million, or 17.0% of net sales revenue. The 0.4 percentage point decrease in adjusted operating margin is primarily driven by unfavorable operating leverage, the unfavorable impact of less Beauty segment sales within consolidated net sales revenue, a less favorable product mix within the Home & Outdoor segment due to the acquisition of Osprey, higher salary and wage costs, and an increase in outbound freight costs. These factors were partially offset by reduced annual incentive compensation expense, a more favorable customer mix within the Home & Outdoor segment, and a more favorable product mix within the Beauty segment primarily due to the acquisition of Curlsmith.
  • Adjusted income decreased $24.4 million, or 26.9%, to $66.3 million, compared to $90.6 million for the same period last year. Adjusted diluted EPS decreased 26.1% to $2.75 compared to $3.72. The decrease in adjusted diluted EPS was primarily due to lower adjusted operating income, higher interest expense and an increase in the effective income tax rate. These factors were partially offset by lower weighted average diluted shares outstanding.

Segment Results - Third Quarter Fiscal 2023 Compared to Third Quarter Fiscal 2022

Home & Outdoor net sales revenue decreased $17.2 million, or 7.0%, to $228.9 million, compared to $246.1 million. The decline was driven by a decrease from Organic business of $57.3 million, or 23.3%, primarily due to declines in sales related to lower consumer demand driven by shifts in consumer spending patterns and reduced orders from retail customers due to higher trade inventory levels, the unfavorable comparative impact of earlier than typical customer orders in the third quarter of fiscal 2022 as retailers accelerated orders to try to avoid supply chain disruptions during the prior year holiday season, and lower sales in the club channel. These factors were partially offset by higher sales in the closeout channel and the favorable impact of customer price increases related to rising freight and product costs. The Organic business decline was partially offset by the contribution of $43.3 million from the acquisition of Osprey. Operating income was $30.8 million, or 13.5% of segment net sales revenue, compared to $43.2 million, or 17.6% of segment net sales revenue. The 4.1 percentage point decrease in segment operating margin was primarily due to the impact of the acquisition of Osprey, which has a lower operating margin than the rest of the Home & Outdoor segment, increased salary and wage costs, restructuring charges of $5.1 million, and unfavorable operating leverage. These factors were partially offset by reduced annual incentive compensation expense, a decrease in distribution expense, the net impact of inflationary costs and related customer price increases, lower inventory obsolescence expense, and a more favorable customer mix. Adjusted operating income decreased 16.5% to $39.9 million, or 17.4% of segment net sales revenue, compared to $47.7 million, or 19.4% of segment net sales revenue.

Health & Wellness net sales revenue decreased $23.4 million, or 11.5%, to $180.5 million, compared to $203.9 million. The decline was driven by a decrease from Organic business of $22.0 million, or 10.8%, primarily due to lower sales of thermometry, seasonal categories, water filtration, and air filtration products primarily driven by lower consumer demand, shifts in consumer spending patterns and reduced orders from retail customers due to higher trade inventory levels. These factors were partially offset by an increase in sales of humidification products, growth in international sales, and the impact of customer price increases related to rising freight and product costs. Operating income was $21.3 million, or 11.8% of segment net sales revenue, compared to $13.6 million, or 6.7% of segment net sales revenue. The 5.1 percentage point increase in segment operating margin was primarily due to a gain from insurance recoveries on damaged inventory of $8.2 million, a decrease in EPA compliance costs of $2.8 million, lower inventory obsolescence expense, the net impact of inflationary costs and related customer price increases, decreased annual incentive compensation expense, reduced salary and wage costs, lower outbound freight costs, and an increase in duty refunds received. These factors were partially offset by unfavorable operating leverage, restructuring charges of $2.9 million, and higher distribution expense. Adjusted operating income decreased 2.1% to $21.3 million, or 11.8% of segment net sales revenue, compared to $21.8 million, or 10.7% of segment net sales revenue.

Beauty net sales revenue decreased $25.7 million, or 14.7%, to $149.2 million, compared to $174.8 million. The decline was driven by a decrease from Organic business of $36.2 million, or 20.7%. The Organic business decrease was primarily due to reduced hair appliances category sales driven by lower consumer demand, shifts in consumer spending patterns and reduced orders from retail customers due to higher trade inventory levels, the unfavorable comparative impact of earlier than typical customer orders in the third quarter of fiscal 2022 as retailers accelerated orders to try to avoid supply chain disruptions during the prior year holiday season, and a decline in Non-Core business net sales revenue due to the sale of the Personal Care business. These factors were partially offset by the impact of customer price increases related to rising freight and product costs and $13.1 million from the acquisition of Curlsmith. Operating income was $25.1 million, or 16.8% of segment net sales revenue, compared to $33.2 million, or 19.0% of segment net sales revenue. The 2.2 percentage point decrease in segment operating margin was primarily due to unfavorable operating leverage, increased salary and wage costs, restructuring charges of $2.5 million, higher share-based compensation expense, the net dilutive impact of inflationary costs and related customer price increases, an increase in inventory obsolescence expense, higher distribution expense, increased outbound freight costs, and an increase in amortization expense. These factors were partially offset by decreased annual incentive compensation expense, a gain from insurance recoveries on damaged inventory of $1.5 million, favorable foreign exchange impacts, and a more favorable product mix primarily due to the acquisition of Curlsmith. Adjusted operating income decreased 14.0% to $31.5 million, or 21.1% of segment net sales revenue, compared to $36.6 million, or 20.9% of segment net sales revenue.

Balance Sheet and Cash Flow Highlights - Third Quarter Fiscal 2023 Compared to Third Quarter Fiscal 2022

  • Cash and cash equivalents totaled $45.3 million, compared to $44.3 million.
  • Accounts receivable turnover was 70.6 days, compared to 70.4 days.
  • Inventory was $536.8 million, compared to $585.8 million. Trailing twelve-month inventory turnover was 2.1 times, compared to 2.3 times.
  • Total short- and long-term debt was $1,080.5 million, compared to $447.5 million, primarily due to the acquisitions of Osprey and Curlsmith as well as investments in construction of the new distribution center.
  • Net cash provided by operating activities for the first nine months of the fiscal year was $49.5 million, compared to net cash used by operating activities of $5.1 million for the same period last year.
  • For the first nine months of the fiscal year, net cash used by investing activities of $290.7 million included investments to acquire Curlsmith for $147.9 million and capital asset expenditures of $125.8 million for construction of the new distribution center.

Restructuring Plan

The Company previously announced a global restructuring plan intended to expand operating margins through initiatives designed to improve effectiveness and efficiency (collectively referred to as “Project Pegasus”). Project Pegasus, under the leadership of the Chief Operating Officer, Noel Geoffroy, and with advice from a premium global consulting firm, includes initiatives to further optimize the Company's brand portfolio, streamline and simplify the organization, accelerate cost of goods savings projects, enhance the efficiency of its supply chain network, optimize its indirect spending, and improve its cash flow and working capital, as well as other activities. The Company anticipates these initiatives will create operating efficiencies, as well as provide a platform to fund future growth investments.

As part of the Pegasus workstream focused on streamlining and simplifying the organization, the Company is announcing three major changes to the structure of its organization. The first change results in combining the Beauty and Health & Wellness businesses into a single reportable segment that will be referred to and reported as “Beauty & Wellness.” The second is the creation of a North America Regional Market Organization responsible for sales and go to market strategies for all categories and channels in the United States and Canada. The third is further centralization of certain functions under shared services, especially in Operations and Finance to better support the business segments and RMOs. The new structure will reduce the size of the global workforce by approximately 10%. The majority of the role reductions will be completed by March 1st, 2023. Nearly all of the remaining role reductions are expected to be completed before the end of fiscal year 2024. The Company believes that these changes better focus business segment resources on brand development, consumer-centric innovation and marketing, the RMOs on sales and go to market strategies, and shared services on their respective areas of expertise while also creating a more efficient and effective organizational structure. Beginning with the Company's fiscal 2023 Form 10-K, future disclosures will reflect the two reportable segments, Home & Outdoor and Beauty & Wellness.

Consistent with the second quarter of fiscal 2023, the Company continues to have the following expectations regarding Project Pegasus:

  • Targeted annualized pre-tax operating profit improvements of approximately $75 million to $85 million, which the Company expects to begin in fiscal 2024 and be substantially achieved by the end of fiscal 2026.
  • Estimated cadence of the recognition of the savings will be approximately 25% in fiscal 2024, approximately 50% in fiscal 2025 and approximately 25% in fiscal 2026.
  • Total profit improvements to be realized approximately 60% through reduced cost of goods sold and 40% through lower SG&A.
  • Total one-time pre-tax restructuring charges of approximately $85 million to $95 million over the duration of the plan, which is expected to be completed during fiscal 2025 and will primarily be comprised of severance and employee related costs, professional fees, contract termination costs, and other exit and disposal costs.
  • All of the Company's operating segments and shared services will be impacted by the plan.

Updated Fiscal 2023 Annual Outlook

The Company believes that Core business growth is the most relevant basis, as it provides the best comparability between historical and future periods. Due to the sale of the Personal Care business, the Company is not currently expecting any material activity related to Non-Core business in fiscal 2023. Therefore, the amounts included in its updated outlook for fiscal 2023 will be shown on a consolidated basis. However, due to the fact that the fiscal 2022 results include material activity related to Non-Core business, the year-over-year growth rates on a consolidated and Core business basis will be different. Where appropriate, the information provided in the outlook will reflect growth rates on both a consolidated and Core business basis.

The Company now expects consolidated net sales revenue in the range of $2.025 billion to $2.050 billion, which implies a decline of 8.9% to 7.8%, and a Core business decline of 7.5% to 6.4%.

The Company’s updated fiscal year net sales outlook reflects the following expectations by segment:

  • Home & Outdoor net sales growth of 2.5% to 3.5%; including net sales from Osprey of $180 million to $185 million;
  • Health & Wellness net sales decline of 11% to 10%; and
  • Beauty Core business net sales decline of 18.5% to 17.5%; including net sales from Curlsmith of $35 million to $40 million.

The Company now expects consolidated GAAP diluted EPS of $4.82 to $5.11 and consolidated non-GAAP adjusted diluted EPS in the range of $9.20 to $9.40, which implies a decrease in consolidated adjusted diluted EPS in the range of 25.6% to 23.9%, and a decrease in Core adjusted diluted EPS in the range of 24.5% to 22.8%. This includes adjusted diluted EPS contribution from Osprey of approximately $0.35 to $0.40, and $0.20 to $0.25 from Curlsmith.

The Company’s updated consolidated net sales and EPS outlooks reflect the following assumptions:

  • the assumption that the severity of the cough/cold/flu season will be higher than pre-COVID historical averages;
  • December 2022 foreign currency exchange rates will remain constant for the remainder of the fiscal year;
  • the estimated net favorable impact to net sales of approximately $10 million and adjusted diluted EPS of approximately $0.10 related to the EPA matter;
  • estimated incremental after-tax inflationary cost pressures in the range of $50 million to $55 million, or approximately $2.10 to $2.25 of adjusted diluted EPS;
  • expected interest expense of $42 million to $43 million based on the current assumption that the Federal Open Market Committee will increase interest rates by 450 basis points during calendar year 2022;
  • a reported consolidated GAAP effective tax rate range of 19.5% to 19.9% for the full fiscal year 2023 and a consolidated adjusted effective tax rate range of 13.1% to 13.6%; and
  • an estimated weighted average diluted shares outstanding of 24.1 million.

The Company now expects capital and intangible asset expenditures of $175 million to $185 million for the full fiscal year 2023 including expected expenditures of $150 million to $155 million related to the construction of a previously announced new distribution facility that is expected to be completed by the end of fiscal 2023.

The likelihood and potential impact of any fiscal 2023 acquisitions and divestitures, future asset impairment charges, future foreign currency fluctuations, or further share repurchases are unknown and cannot be reasonably estimated; therefore, they are not included in the Company’s updated outlook.

Conference Call and Webcast

The Company will conduct a teleconference in conjunction with today’s earnings release. The teleconference begins at 9:00 a.m. Eastern Time today, Thursday, January 5, 2023. Institutional investors and analysts interested in participating in the call are invited to dial (877) 407-3982 approximately ten minutes prior to the start of the call. The conference call will also be webcast live on the Events & Presentations page at: http://investor.helenoftroy.com/. A telephone replay of this call will be available at 12:00 p.m. Eastern Time on January 5, 2023 until 11:59 p.m. Eastern Time on January 19, 2023 and can be accessed by dialing (844) 512-2921 and entering replay pin number 13734889. A replay of the webcast will remain available on the website for one year.

Non-GAAP Financial Measures

The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States of America (“GAAP”). To supplement its presentation, the Company discloses certain financial measures that may be considered non-GAAP such as Adjusted Operating Income, Adjusted Operating Margin, Adjusted Effective Tax Rate, Core Adjusted Effective Tax Rate, Adjusted Income, Adjusted Diluted Earnings per Share (“EPS”), Core and Non-Core Adjusted Diluted EPS, EBITDA, Adjusted EBITDA, and Free Cash Flow, which are presented in accompanying tables to this press release along with a reconciliation of these financial measures to their corresponding GAAP-based measures presented in the Company’s condensed consolidated statements of income and cash flows. For additional information see Note 6 to the accompanying tables to this press release.

About Helen of Troy Limited

Helen of Troy Limited (NASDAQ: HELE) is a leading global consumer products company offering creative products and solutions for its customers through a diversified portfolio of well-recognized and widely trusted brands, including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools and Drybar. The Company sometimes refers to these brands as its Leadership Brands. All trademarks herein belong to Helen of Troy Limited (or its subsidiaries) and/or are used under license from their respective licensors.

For more information about Helen of Troy, please visit http://investor.helenoftroy.com

Forward-Looking Statements

Certain written and oral statements made by the Company and subsidiaries of the Company may constitute “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made in this press release, in other filings with the SEC, and in certain other oral and written presentations. Generally, the words “anticipates”, “believes”, “expects”, “plans”, “may”, “will”, “might”, “would”, “should”, “seeks”, “estimates”, “project”, “predict”, “potential”, “currently”, “continue”, “intends”, “outlook”, “forecasts”, “targets”, “could”, and other similar words identify forward-looking statements. All statements that address operating results, events, or developments that the Company expects or anticipates may occur in the future, including statements related to sales, expenses, EPS results, and statements expressing general expectations about future operating results, are forward-looking statements and are based upon its current expectations and various assumptions. The Company believes there is a reasonable basis for these expectations and assumptions, but there can be no assurance that the Company will realize these expectations or that these assumptions will prove correct. Forward-looking statements speak only as of the date they are made and are subject to risks that could cause them to differ materially from actual results. Accordingly, the Company cautions readers not to place undue reliance on forward-looking statements. The forward-looking statements contained in this press release should be read in conjunction with, and are subject to and qualified by, the risks described in the Company’s Form 10-Q for the quarterly period ended November 30, 2022, and in the Company's other filings with the SEC. Investors are urged to refer to the risk factors referred to above for a description of these risks. Such risks include, among others, the occurrence of cyber incidents or failure by the Company or its third-party service providers to maintain cybersecurity and the integrity of confidential internal or customer data, a cybersecurity breach, obsolescence or interruptions in the operation of the Company’s central global Enterprise Resource Planning systems and other peripheral information systems, the geographic concentration and peak season capacity of certain United States (“U.S.”) distribution facilities which increase its risk to disruptions that could affect the Company’s ability to deliver products in a timely manner, the Company's ability to successfully manage the demand, supply, and operational challenges associated with the actual or perceived effects of COVID-19 and any similar future public health crisis, pandemic or epidemic, the Company’s ability to develop and introduce a continuing stream of innovative new products to meet changing consumer preferences, actions taken by large customers that may adversely affect the Company’s gross profit and operating results, the Company’s dependence on sales to several large customers and the risks associated with any loss of, or substantial decline in, sales to top customers, the Company’s dependence on third-party manufacturers, most of which are located in Asia, and any inability to obtain products from such manufacturers, the Company's ability to deliver products to its customers in a timely manner and according to their fulfillment standards, the risks associated with trade barriers, exchange controls, expropriations, and other risks associated with domestic and foreign operations including uncertainty and business interruptions resulting from political changes and actions in the U.S. and abroad, such as the current conflict between Russia and Ukraine, and volatility in the global credit and financial markets and economy, the Company's dependence on the strength of retail economies and vulnerabilities to any prolonged economic downturn, including a downturn from the effects of macroeconomic conditions, any public health crises (including any lingering effects of new surges in COVID-19) or similar conditions, risks associated with the use of licensed trademarks from or to third parties, risks associated with weather conditions, the duration and severity of the cold and flu season and other related factors, the Company’s reliance on its Chief Executive Officer and a limited number of other key senior officers to operate its business, expectations regarding the Company's global restructuring plan initiatives and the Company's ability to realize targeted savings, including expectations concerning costs and savings, are based on management’s estimates available at the time and are subject to a number of assumptions that could materially impact such estimates, expectations regarding recent acquisitions (including Curlsmith and Osprey) and any future acquisitions or divestitures, including the Company's ability to realize related synergies along with its ability to effectively integrate acquired businesses or disaggregate divested businesses, the risks of potential changes in laws and regulations, including environmental, employment and health and safety and tax laws, and the costs and complexities of compliance with such laws, the risks associated with increased focus and expectations on climate change and other environmental, social and governance matters, the risks associated with significant changes in or the Company's compliance with regulations, interpretations or product certification requirements, the risks associated with global legal developments regarding privacy and data security that could result in changes to its business practices, penalties, increased cost of operations, or otherwise harm the business, the Company's ability to continue to avoid classification as a Controlled Foreign Corporation, the risks associated with legislation enacted in Bermuda and Barbados in response to the European Union’s review of harmful tax competition, the risks associated with accounting for tax positions and the resolution of tax disputes, the risks of significant tariffs or other restrictions being placed on imports from China, Mexico or Vietnam or any retaliatory trade measures taken by China, Mexico or Vietnam, the risks associated with product recalls, product liability and other claims against the Company, and associated financial risks including but not limited to, significant impairment of the Company's goodwill, indefinite-lived and definite-lived intangible assets or other long-lived assets, increased costs of raw materials, energy and transportation, the risks to the Company's liquidity or cost of capital which may be materially adversely affected by constraints or changes in the capital and credit markets and limitations under its financing arrangements, risks associated with foreign currency exchange rate fluctuations, and projections of product demand, sales and net income, which are highly subjective in nature, and from which future sales and net income could vary in a material amount. The Company undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.

 

HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Income (2)

(Unaudited) (in thousands, except per share data)

 

 

Three Months Ended November 30,

 

2022

 

2021

Sales revenue, net

$

558,606

 

100.0

%

 

$

624,884

 

100.0

%

Cost of goods sold

 

301,930

 

54.1

%

 

 

351,051

 

56.2

%

Gross profit

 

256,676

 

45.9

%

 

 

273,833

 

43.8

%

Selling, general and administrative expense (“SG&A”)

 

169,020

 

30.3

%

 

 

183,788

 

29.4

%

Restructuring charges

 

10,463

 

1.9

%

 

 

5

 

%

Operating income

 

77,193

 

13.8

%

 

 

90,040

 

14.4

%

Non-operating income, net

 

5

 

%

 

 

52

 

%

Interest expense

 

13,149

 

2.4

%

 

 

3,206

 

0.5

%

Income before income tax

 

64,049

 

11.5

%

 

 

86,886

 

13.9

%

Income tax expense

 

12,223

 

2.2

%

 

 

11,203

 

1.8

%

Net income

$

51,826

 

9.3

%

 

$

75,683

 

12.1

%

 

 

 

 

 

 

 

 

Diluted earnings per share (“EPS”)

$

2.15

 

 

 

$

3.10

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

24,078

 

 

 

 

24,399

 

 

 

 

Nine Months Ended November 30,

 

2022

 

2021

Sales revenue, net

$

1,588,084

 

100.0

%

 

$

1,641,335

 

100.0

%

Cost of goods sold

 

898,791

 

56.6

%

 

 

936,322

 

57.0

%

Gross profit

 

689,293

 

43.4

%

 

 

705,013

 

43.0

%

SG&A

 

515,974

 

32.5

%

 

 

482,467

 

29.4

%

Restructuring charges

 

15,241

 

1.0

%

 

 

380

 

%

Operating income

 

158,078

 

10.0

%

 

 

222,166

 

13.5

%

Non-operating income, net

 

185

 

%

 

 

185

 

%

Interest expense

 

26,688

 

1.7

%

 

 

9,508

 

0.6

%

Income before income tax

 

131,575

 

8.3

%

 

 

212,843

 

13.0

%

Income tax expense

 

24,482

 

1.5

%

 

 

28,873

 

1.8

%

Net income

$

107,093

 

6.7

%

 

$

183,970

 

11.2

%

 

 

 

 

 

 

 

 

Diluted EPS

$

4.45

 

 

 

$

7.52

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

24,086

 

 

 

 

24,461

 

 

 

Condensed Consolidated Statements of Income and Reconciliation of Non-GAAP

Financial Measures – Adjusted Operating Income, Adjusted Income and Adjusted Diluted EPS (2) (6)

(Unaudited) (in thousands, except per share data)

 

 

Three Months Ended November 30, 2022

 

As Reported

(GAAP)

 

Adjustments

 

Adjusted

(Non-GAAP)

Sales revenue, net

$

558,606

 

100.0

%

 

$

 

 

$

558,606

 

100.0

%

Cost of goods sold

 

301,930

 

54.1

%

 

 

(370

)

(7

)

 

301,560

 

54.0

%

Gross profit

 

256,676

 

45.9

%

 

 

370

 

 

 

257,046

 

46.0

%

SG&A

 

169,020

 

30.3

%

 

 

(1,733

)

(7

)

 

164,370

 

29.4

%

 

 

 

 

 

 

9,676

 

(8

)

 

 

 

 

 

 

 

 

 

(4,652

)

(9

)

 

 

 

 

 

 

 

 

 

(7,941

)

(10

)

 

 

 

Restructuring charges

 

10,463

 

1.9

%

 

 

(10,463

)

(11

)

 

 

%

Operating income

 

77,193

 

13.8

%

 

 

15,483

 

 

 

92,676

 

16.6

%

Non-operating income, net

 

5

 

%

 

 

 

 

 

5

 

%

Interest expense

 

13,149

 

2.4

%

 

 

 

 

 

13,149

 

2.4

%

Income before income tax

 

64,049

 

11.5

%

 

 

15,483

 

 

 

79,532

 

14.2

%

Income tax expense

 

12,223

 

2.2

%

 

 

1,050

 

 

 

13,273

 

2.4

%

Net income

$

51,826

 

9.3

%

 

$

14,433

 

 

$

66,259

 

11.9

%

 

 

 

 

 

 

 

 

 

 

Diluted EPS

$

2.15

 

 

 

$

0.60

 

 

$

2.75

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

24,078

 

 

 

 

 

 

24,078

 

 

 

 

Three Months Ended November 30, 2021

 

As Reported

(GAAP)

 

Adjustments

 

Adjusted

(Non-GAAP)

Sales revenue, net

$

624,884

 

100.0

%

 

$

 

 

$

624,884

 

100.0

%

Cost of goods sold

 

351,051

 

56.2

%

 

 

(306

)

(7

)

 

350,745

 

56.1

%

Gross profit

 

273,833

 

43.8

%

 

 

306

 

 

 

274,139

 

43.9

%

SG&A

 

183,788

 

29.4

%

 

 

(4,620

)

(7

)

 

168,020

 

26.9

%

 

 

 

 

 

 

(1,605

)

(12

)

 

 

 

 

 

 

 

 

 

(2,994

)

(9

)

 

 

 

 

 

 

 

 

 

(6,549

)

(10

)

 

 

 

Restructuring charges

 

5

 

%

 

 

(5

)

(11

)

 

 

%

Operating income

 

90,040

 

14.4

%

 

 

16,079

 

 

 

106,119

 

17.0

%

Non-operating income, net

 

52

 

%

 

 

 

 

 

52

 

%

Interest expense

 

3,206

 

0.5

%

 

 

 

 

 

3,206

 

0.5

%

Income before income tax

 

86,886

 

13.9

%

 

 

16,079

 

 

 

102,965

 

16.5

%

Income tax expense

 

11,203

 

1.8

%

 

 

1,113

 

 

 

12,316

 

2.0

%

Net income

$

75,683

 

12.1

%

 

$

14,966

 

 

$

90,649

 

14.5

%

 

 

 

 

 

 

 

 

 

 

Diluted EPS

$

3.10

 

 

 

$

0.61

 

 

$

3.72

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

24,399

 

 

 

 

 

 

24,399

 

 

 

Condensed Consolidated Statements of Income and Reconciliation of Non-GAAP Financial

Measures – Adjusted Operating Income, Adjusted Income and Adjusted Diluted EPS (2) (6)

(Unaudited) (in thousands, except per share data)

 

 

Nine Months Ended November 30, 2022

 

As Reported

(GAAP)

 

Adjustments

 

Adjusted

(Non-GAAP)

Sales revenue, net

$

1,588,084

 

100.0

%

 

$

 

 

$

1,588,084

 

100.0

%

Cost of goods sold

 

898,791

 

56.6

%

 

 

(16,928

)

(7

)

 

881,863

 

55.5

%

Gross profit

 

689,293

 

43.4

%

 

 

16,928

 

 

 

706,221

 

44.5

%

SG&A

 

515,974

 

32.5

%

 

 

(5,173

)

(7

)

 

471,976

 

29.7

%

 

 

 

 

 

 

(2,784

)

(12

)

 

 

 

 

 

 

 

 

 

9,676

 

(8

)

 

 

 

 

 

 

 

 

 

(13,662

)

(9

)

 

 

 

 

 

 

 

 

 

(32,055

)

(10

)

 

 

 

Restructuring charges

 

15,241

 

1.0

%

 

 

(15,241

)

(11

)

 

 

%

Operating income

 

158,078

 

10.0

%

 

 

76,167

 

 

 

234,245

 

14.8

%

Non-operating income, net

 

185

 

%

 

 

 

 

 

185

 

%

Interest expense

 

26,688

 

1.7

%

 

 

 

 

 

26,688

 

1.7

%

Income before income tax

 

131,575

 

8.3

%

 

 

76,167

 

 

 

207,742

 

13.1

%

Income tax expense

 

24,482

 

1.5

%

 

 

4,114

 

 

 

28,596

 

1.8

%

Net income

$

107,093

 

6.7

%

 

$

72,053

 

 

$

179,146

 

11.3

%

 

 

 

 

 

 

 

 

 

 

Diluted EPS

$

4.45

 

 

 

$

2.99

 

 

$

7.44

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

24,086

 

 

 

 

 

 

24,086

 

 

 

 

Nine Months Ended November 30, 2021

 

As Reported

(GAAP)

 

Adjustments

 

Adjusted

(Non-GAAP)

Sales revenue, net

$

1,641,335

 

100.0

%

 

$

 

 

$

1,641,335

 

100.0

%

Cost of goods sold

 

936,322

 

57.0

%

 

 

(13,775

)

(7

)

 

922,547

 

56.2

%

Gross profit

 

705,013

 

43.0

%

 

 

13,775

 

 

 

718,788

 

43.8

%

SG&A

 

482,467

 

29.4

%

 

 

(7,223

)

(7

)

 

436,327

 

26.6

%

 

 

 

 

 

 

(1,605

)

(12

)

 

 

 

 

 

 

 

 

 

(8,963

)

(9

)

 

 

 

 

 

 

 

 

 

(28,349

)

(10

)

 

 

 

Restructuring charges

 

380

 

%

 

 

(380

)

(11

)

 

 

%

Operating income

 

222,166

 

13.5

%

 

 

60,295

 

 

 

282,461

 

17.2

%

Non-operating income, net

 

185

 

%

 

 

 

 

 

185

 

%

Interest expense

 

9,508

 

0.6

%

 

 

 

 

 

9,508

 

0.6

%

Income before income tax

 

212,843

 

13.0

%

 

 

60,295

 

 

 

273,138

 

16.6

%

Income tax expense

 

28,873

 

1.8

%

 

 

3,337

 

 

 

32,210

 

2.0

%

Net income

$

183,970

 

11.2

%

 

$

56,958

 

 

$

240,928

 

14.7

%

 

 

 

 

 

 

 

 

 

 

Diluted EPS

$

7.52

 

 

 

$

2.33

 

 

$

9.85

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

24,461

 

 

 

 

 

 

24,461

 

 

 

Consolidated and Segment Net Sales Revenue

(Unaudited) (in thousands)

 

Three Months Ended November 30,

 

Home & Outdoor

 

Health & Wellness

 

Beauty

 

Total

Fiscal 2022 sales revenue, net

$

246,135

 

 

$

203,900

 

 

$

174,849

 

 

$

624,884

 

Organic business (1)

 

(57,262

)

 

 

(22,046

)

 

 

(36,242

)

 

 

(115,550

)

Impact of foreign currency

 

(3,191

)

 

 

(1,371

)

 

 

(2,512

)

 

 

(7,074

)

Acquisition (2)

 

43,255

 

 

 

 

 

 

13,091

 

 

 

56,346

 

Change in sales revenue, net

 

(17,198

)

 

 

(23,417

)

 

 

(25,663

)

 

 

(66,278

)

Fiscal 2023 sales revenue, net

$

228,937

 

 

$

180,483

 

 

$

149,186

 

 

$

558,606

 

 

 

 

 

 

 

 

 

Total net sales revenue growth (decline)

 

(7.0

) %

 

 

(11.5

) %

 

 

(14.7

) %

 

 

(10.6

) %

Organic business

 

(23.3

) %

 

 

(10.8

) %

 

 

(20.7

) %

 

 

(18.5

) %

Impact of foreign currency

 

(1.3

) %

 

 

(0.7

) %

 

 

(1.4

) %

 

 

(1.1

) %

Acquisition

 

17.6

%

 

 

%

 

 

7.5

%

 

 

9.0

%

 
 

 

Nine Months Ended November 30,

 

Home & Outdoor

 

Health & Wellness

 

Beauty

 

Total

Fiscal 2022 sales revenue, net

$

654,997

 

 

$

549,475

 

 

$

436,863

 

 

$

1,641,335

 

Organic business (1)

 

(85,186

)

 

 

(16,939

)

 

 

(104,759

)

 

 

(206,884

)

Impact of foreign currency

 

(7,950

)

 

 

(2,606

)

 

 

(4,253

)

 

 

(14,809

)

Acquisition (2)

 

141,898

 

 

 

 

 

 

26,544

 

 

 

168,442

 

Change in sales revenue, net

 

48,762

 

 

 

(19,545

)

 

 

(82,468

)

 

 

(53,251

)

Fiscal 2023 sales revenue, net

$

703,759

 

 

$

529,930

 

 

$

354,395

 

 

$

1,588,084

 

 

 

 

 

 

 

 

 

Total net sales revenue growth (decline)

 

7.4

%

 

 

(3.6

) %

 

 

(18.9

) %

 

 

(3.2

) %

Organic business

 

(13.0

) %

 

 

(3.1

) %

 

 

(24.0

) %

 

 

(12.6

) %

Impact of foreign currency

 

(1.2

) %

 

 

(0.5

) %

 

 

(1.0

) %

 

 

(0.9

) %

Acquisition

 

21.7

%

 

 

%

 

 

6.1

%

 

 

10.3

%

 

Leadership Brand and Other Net Sales Revenue (2)

(Unaudited) (in thousands)

 

 

Three Months Ended November 30,

 

2022

 

2021

 

$ Change

 

% Change

Leadership Brand sales revenue, net (4)

$

451,500

 

$

506,982

 

$

(55,482

)

 

(10.9

) %

All other sales revenue, net

 

107,106

 

 

117,902

 

 

(10,796

)

 

(9.2

) %

Total sales revenue, net

$

558,606

 

$

624,884

 

$

(66,278

)

 

(10.6

) %

 

 

Nine Months Ended November 30,

 

2022

 

2021

 

$ Change

 

% Change

Leadership Brand sales revenue, net (4)

$

1,338,849

 

$

1,329,858

 

$

8,991

 

 

0.7

%

All other sales revenue, net

 

249,235

 

 

311,477

 

 

(62,242

)

 

(20.0

) %

Total sales revenue, net

$

1,588,084

 

$

1,641,335

 

$

(53,251

)

 

(3.2

) %

 

Consolidated and Segment Net Sales from Core and Non-Core Business (3)

(Unaudited) (in thousands)

 

 

Three Months Ended November 30,

 

Home & Outdoor

 

Health & Wellness

 

Beauty

 

Total

Fiscal 2022 sales revenue, net

$

246,135

 

 

$

203,900

 

 

$

174,849

 

 

$

624,884

 

Core business

 

(17,198

)

 

 

(23,417

)

 

 

(21,288

)

 

 

(61,903

)

Non-Core business (Personal Care)

 

 

 

 

 

 

 

(4,375

)

 

 

(4,375

)

Change in sales revenue, net

 

(17,198

)

 

 

(23,417

)

 

 

(25,663

)

 

 

(66,278

)

Fiscal 2023 sales revenue, net

$

228,937

 

 

$

180,483

 

 

$

149,186

 

 

$

558,606

 

 

 

 

 

 

 

 

 

Total net sales revenue decline

 

(7.0

) %

 

 

(11.5

) %

 

 

(14.7

) %

 

 

(10.6

) %

Core business

 

(7.0

) %

 

 

(11.5

) %

 

 

(12.2

) %

 

 

(9.9

) %

Non-Core business (Personal Care)

 

%

 

 

%

 

 

(2.5

) %

 

 

(0.7

) %

 

 

Nine Months Ended November 30,

 

Home & Outdoor

 

Health & Wellness

 

Beauty

 

Total

Fiscal 2022 sales revenue, net

$

654,997

 

 

$

549,475

 

 

$

436,863

 

 

$

1,641,335

 

Core business

 

48,762

 

 

 

(19,545

)

 

 

(52,231

)

 

 

(23,014

)

Non-Core business (Personal Care)

 

 

 

 

 

 

 

(30,237

)

 

 

(30,237

)

Change in sales revenue, net

 

48,762

 

 

 

(19,545

)

 

 

(82,468

)

 

 

(53,251

)

Fiscal 2023 sales revenue, net

$

703,759

 

 

$

529,930

 

 

$

354,395

 

 

$

1,588,084

 

 

 

 

 

 

 

 

 

Total net sales revenue growth (decline)

 

7.4

%

 

 

(3.6

) %

 

 

(18.9

) %

 

 

(3.2

) %

Core business

 

7.4

%

 

 

(3.6

) %

 

 

(12.0

) %

 

 

(1.4

) %

Non-Core business (Personal Care)

 

%

 

 

%

 

 

(6.9

) %

 

 

(1.8

) %

 

Consolidated Net Sales by Geographic Region

(Unaudited) (in thousands)

 

 

Three Months Ended November 30,

 

2022

 

2021

U.S. sales revenue, net

$

410,832

 

73.5

%

 

$

496,666

 

79.5

%

International sales revenue, net

 

147,774

 

26.5

%

 

 

128,218

 

20.5

%

Total sales revenue, net

$

558,606

 

100.0

%

 

$

624,884

 

100.0

%

 

 

Nine Months Ended November 30,

 

2022

 

2021

U.S. sales revenue, net

$

1,170,349

 

73.7

%

 

$

1,271,102

 

77.4

%

International sales revenue, net

 

417,735

 

26.3

%

 

 

370,233

 

22.6

%

Total sales revenue, net

$

1,588,084

 

100.0

%

 

$

1,641,335

 

100.0

%

 

Reconciliation of Non-GAAP Financial Measures – GAAP Operating Income and Operating Margin

to Adjusted Operating Income and Adjusted Operating Margin (Non-GAAP) (6)

(Unaudited) (in thousands)

 

 

Three Months Ended November 30, 2022

 

Home &

Outdoor (2)

 

Health &

Wellness

 

Beauty (2)

 

Total

Operating income, as reported (GAAP)

$

30,847

 

 

13.5

%

 

$

21,257

 

 

11.8

%

 

$

25,089

 

 

16.8

%

 

$

77,193

 

 

13.8

%

Acquisition-related expenses

 

(2

)

 

%

 

 

 

 

%

 

 

2

 

 

%

 

 

 

 

%

EPA compliance costs

 

 

 

%

 

 

2,103

 

 

1.2

%

 

 

 

 

%

 

 

2,103

 

 

0.4

%

Gain from insurance recoveries

��

 

 

%

 

 

(8,167

)

 

(4.5

) %

 

 

(1,509

)

 

(1.0

) %

 

 

(9,676

)

 

(1.7

) %

Restructuring charges

 

5,090

 

 

2.2

%

 

 

2,893

 

 

1.6

%

 

 

2,480

 

 

1.7

%

 

 

10,463

 

 

1.9

%

Subtotal

 

35,935

 

 

15.7

%

 

 

18,086

 

 

10.0

%

 

 

26,062

 

 

17.5

%

 

 

80,083

 

 

14.3

%

Amortization of intangible assets

 

1,756

 

 

0.8

%

 

 

582

 

 

0.3

%

 

 

2,314

 

 

1.6

%

 

 

4,652

 

 

0.8

%

Non-cash share-based compensation

 

2,169

 

 

0.9

%

 

 

2,665

 

 

1.5

%

 

 

3,107

 

 

2.1

%

 

 

7,941

 

 

1.4

%

Adjusted operating income (non-GAAP)

$

39,860

 

 

17.4

%

 

$

21,333

 

 

11.8

%

 

$

31,483

 

 

21.1

%

 

$

92,676

 

 

16.6

%

 

 

Three Months Ended November 30, 2021

 

Home &

Outdoor

 

Health &

Wellness

 

Beauty

 

Total

Operating income, as reported (GAAP)

$

43,239

 

17.6

%

 

$

13,573

 

6.7

%

 

$

33,228

 

19.0

%

 

$

90,040

 

14.4

%

Acquisition-related expenses

 

1,605

 

0.7

%

 

 

 

%

 

 

 

%

 

 

1,605

 

0.3

%

EPA compliance costs

 

 

%

 

 

4,926

 

2.4

%

 

 

 

%

 

 

4,926

 

0.8

%

Restructuring charges

 

 

%

 

 

 

%

 

 

5

 

%

 

 

5

 

%

Subtotal

 

44,844

 

18.2

%

 

 

18,499

 

9.1

%

 

 

33,233

 

19.0

%

 

 

96,576

 

15.5

%

Amortization of intangible assets

 

525

 

0.2

%

 

 

572

 

0.3

%

 

 

1,897

 

1.1

%

 

 

2,994

 

0.5

%

Non-cash share-based compensation

 

2,339

 

1.0

%

 

 

2,717

 

1.3

%

 

 

1,493

 

0.9

%

 

 

6,549

 

1.0

%

Adjusted operating income (non-GAAP)

$

47,708

 

19.4

%

 

$

21,788

 

10.7

%

 

$

36,623

 

20.9

%

 

$

106,119

 

17.0

%

 

 

Nine Months Ended November 30, 2022

 

Home &

Outdoor (2)

 

Health &

Wellness

 

Beauty (2)

 

Total

Operating income, as reported (GAAP)

$

102,722

 

14.6

%

 

$

12,505

 

 

2.4

%

 

$

42,851

 

 

12.1

%

 

$

158,078

 

 

10.0

%

Acquisition-related expenses

 

117

 

%

 

 

 

 

%

 

 

2,667

 

 

0.8

%

 

 

2,784

 

 

0.2

%

EPA compliance costs

 

 

%

 

 

22,101

 

 

4.2

%

 

 

 

 

%

 

 

22,101

 

 

1.4

%

Gain from insurance recoveries

 

 

%

 

 

(8,167

)

 

(1.5

) %

 

 

(1,509

)

 

(0.4

) %

 

 

(9,676

)

 

(0.6

) %

Restructuring charges

 

5,562

 

0.8

%

 

 

6,447

 

 

1.2

%

 

 

3,232

 

 

0.9

%

 

 

15,241

 

 

1.0

%

Subtotal

 

108,401

 

15.4

%

 

 

32,886

 

 

6.2

%

 

 

47,241

 

 

13.3

%

 

 

188,528

 

 

11.9

%

Amortization of intangible assets

 

5,255

 

0.7

%

 

 

1,743

 

 

0.3

%

 

 

6,664

 

 

1.9

%

 

 

13,662

 

 

0.9

%

Non-cash share-based compensation

 

10,807

 

1.5

%

 

 

11,078

 

 

2.1

%

 

 

10,170

 

 

2.9

%

 

 

32,055

 

 

2.0

%

Adjusted operating income (non-GAAP)

$

124,463

 

17.7

%

 

$

45,707

 

 

8.6

%

 

$

64,075

 

 

18.1

%

 

$

234,245

 

 

14.8

%

 

 

Nine Months Ended November 30, 2021

 

Home &

Outdoor

 

Health &

Wellness

 

Beauty

 

Total

Operating income, as reported (GAAP)

$

112,303

 

17.1

%

 

$

29,616

 

5.4

%

 

$

80,247

 

18.4

%

 

$

222,166

 

13.5

%

Acquisition-related expenses

 

1,605

 

0.2

%

 

 

 

%

 

 

 

%

 

 

1,605

 

0.1

%

EPA compliance costs

 

 

%

 

 

20,998

 

3.8

%

 

 

 

%

 

 

20,998

 

1.3

%

Restructuring charges

 

369

 

0.1

%

 

 

 

%

 

 

11

 

%

 

 

380

 

%

Subtotal

 

114,277

 

17.4

%

 

 

50,614

 

9.2

%

 

 

80,258

 

18.4

%

 

 

245,149

 

14.9

%

Amortization of intangible assets

 

1,562

 

0.2

%

 

 

1,709

 

0.3

%

 

 

5,692

 

1.3

%

 

 

8,963

 

0.5

%

Non-cash share-based compensation

 

11,047

 

1.7

%

 

 

10,229

 

1.9

%

 

 

7,073

 

1.6

%

 

 

28,349

 

1.7

%

Adjusted operating income (non-GAAP)

$

126,886

 

19.4

%

 

$

62,552

 

11.4

%

 

$

93,023

 

21.3

%

 

$

282,461

 

17.2

%

 

Reconciliation of Non-GAAP Financial Measures - EBITDA

(Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA (6)

(Unaudited) (in thousands)

 

 

Three Months Ended November 30, 2022

 

Home &

Outdoor (2)

 

Health &

Wellness

 

Beauty (2)

 

Total

Operating income, as reported (GAAP)

$

30,847

 

 

$

21,257

 

 

$

25,089

 

 

$

77,193

 

Depreciation and amortization

 

4,716

 

 

 

3,446

 

 

 

3,551

 

 

 

11,713

 

Non-operating income, net

 

 

 

 

 

 

 

5

 

 

 

5

 

EBITDA (non-GAAP)

 

35,563

 

 

 

24,703

 

 

 

28,645

 

 

 

88,911

 

Add: Acquisition-related expenses

 

(2

)

 

 

 

 

 

2

 

 

 

 

EPA compliance costs

 

 

 

 

2,103

 

 

 

 

 

 

2,103

 

Gain from insurance recoveries

 

 

 

 

(8,167

)

 

 

(1,509

)

 

 

(9,676

)

Restructuring charges

 

5,090

 

 

 

2,893

 

 

 

2,480

 

 

 

10,463

 

Non-cash share-based compensation

 

2,169

 

 

 

2,665

 

 

 

3,107

 

 

 

7,941

 

Adjusted EBITDA (non-GAAP)

$

42,820

 

 

$

24,197

 

 

$

32,725

 

 

$

99,742

 

 

 

Three Months Ended November 30, 2021

 

Home &

Outdoor

 

Health &

Wellness

 

Beauty

 

Total

Operating income, as reported (GAAP)

$

43,239

 

$

13,573

 

$

33,228

 

$

90,040

Depreciation and amortization

 

2,894

 

 

2,529

 

 

3,218

 

 

8,641

Non-operating income, net

 

 

 

 

 

52

 

 

52

EBITDA (non-GAAP)

 

46,133

 

 

16,102

 

 

36,498

 

 

98,733

Add: Acquisition-related expenses

 

1,605

 

 

 

 

 

 

1,605

EPA compliance costs

 

 

 

4,926

 

 

 

 

4,926

Restructuring charges

 

 

 

 

 

5

 

 

5

Non-cash share-based compensation

 

2,339

 

 

2,717

 

 

1,493

 

 

6,549

Adjusted EBITDA (non-GAAP)

$

50,077

 

$

23,745

 

$

37,996

 

$

111,818

 

 

Nine Months Ended November 30, 2022

 

Home &

Outdoor (2)

 

Health &

Wellness

 

Beauty (2)

 

Total

Operating income, as reported (GAAP)

$

102,722

 

$

12,505

 

 

$

42,851

 

 

$

158,078

 

Depreciation and amortization

 

13,704

 

 

9,279

 

 

 

10,347

 

 

 

33,330

 

Non-operating income, net

 

 

 

 

 

 

185

 

 

 

185

 

EBITDA (non-GAAP)

 

116,426

 

 

21,784

 

 

 

53,383

 

 

 

191,593

 

Add: Acquisition-related expenses

 

117

 

 

 

 

 

2,667

 

 

 

2,784

 

EPA compliance costs

 

 

 

22,101

 

 

 

 

 

 

22,101

 

Gain from insurance recoveries

 

 

 

(8,167

)

 

 

(1,509

)

 

 

(9,676

)

Restructuring charges

 

5,562

 

 

6,447

 

 

 

3,232

 

 

 

15,241

 

Non-cash share-based compensation

 

10,807

 

 

11,078

 

 

 

10,170

 

 

 

32,055

 

Adjusted EBITDA (non-GAAP)

$

132,912

 

$

53,243

 

 

$

67,943

 

 

$

254,098

 

 

Reconciliation of Non-GAAP Financial Measures - EBITDA

(
Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted EBITDA (6)

(Unaudited) (in thousands)

 

 

Nine Months Ended November 30, 2021

 

Home &

Outdoor

 

Health &

Wellness

 

Beauty

 

Total

Operating income, as reported (GAAP)

$

112,303

 

$

29,616

 

$

80,247

 

$

222,166

Depreciation and amortization

 

8,257

 

 

7,879

 

 

9,946

 

 

26,082

Non-operating income, net

 

 

 

 

 

185

 

 

185

EBITDA (non-GAAP)

 

120,560

 

 

37,495

 

 

90,378

 

 

248,433

Add: Acquisition-related expenses

 

1,605

 

 

 

 

 

 

1,605

EPA compliance costs

 

 

 

20,998

 

 

 

 

20,998

Restructuring charges

 

369

 

 

 

 

11

 

 

380

Non-cash share-based compensation

 

11,047

 

 

10,229

 

 

7,073

 

 

28,349

Adjusted EBITDA (non-GAAP)

$

133,581

 

$

68,722

 

$

97,462

 

$

299,765

 

Reconciliation of Non-GAAP Financial Measures – GAAP Income and Diluted EPS to

Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (6)

(Unaudited) (in thousands, except per share data)

 

 

Three Months Ended November 30, 2022

 

Income

 

Diluted EPS

 

Before Tax

 

Tax

 

Net of Tax

 

Before Tax

 

Tax

 

Net of Tax

As reported (GAAP)

$

64,049

 

 

$

12,223

 

 

$

51,826

 

 

$

2.66

 

 

$

0.51

 

 

$

2.15

 

Acquisition-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPA compliance costs

 

2,103

 

 

 

32

 

 

 

2,071

 

 

 

0.09

 

 

 

 

 

 

0.09

 

Gain from insurance recoveries

 

(9,676

)

 

 

(121

)

 

 

(9,555

)

 

 

(0.40

)

 

 

(0.01

)

 

 

(0.40

)

Restructuring charges

 

10,463

 

 

 

131

 

 

 

10,332

 

 

 

0.43

 

 

 

0.01

 

 

 

0.43

 

Subtotal

 

66,939

 

 

 

12,265

 

 

 

54,674

 

 

 

2.78

 

 

 

0.51

 

 

 

2.27

 

Amortization of intangible assets

 

4,652

 

 

 

534

 

 

 

4,118

 

 

 

0.19

 

 

 

0.02

 

 

 

0.17

 

Non-cash share-based compensation

 

7,941

 

 

 

474

 

 

 

7,467

 

 

 

0.33

 

 

 

0.02

 

 

 

0.31

 

Adjusted (non-GAAP)

$

79,532

 

 

$

13,273

 

 

$

66,259

 

 

$

3.30

 

 

$

0.55

 

 

$

2.75

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

 

24,078

 

 
 

 

Three Months Ended November 30, 2021

 

Income

 

Diluted EPS

 

Before Tax

 

Tax

 

Net of Tax

 

Before Tax

 

Tax

 

Net of Tax

As reported (GAAP)

$

86,886

 

$

11,203

 

$

75,683

 

$

3.56

 

$

0.46

 

$

3.10

Acquisition-related expenses

 

1,605

 

 

58

 

 

1,547

 

 

0.07

 

 

 

 

0.06

EPA compliance costs

 

4,926

 

 

74

 

 

4,852

 

 

0.20

 

 

 

 

0.20

Restructuring charges

 

5

 

 

 

 

5

 

 

 

 

 

 

Subtotal

 

93,422

 

 

11,335

 

 

82,087

 

 

3.83

 

 

0.46

 

 

3.36

Amortization of intangible assets

 

2,994

 

 

197

 

 

2,797

 

 

0.12

 

 

0.01

 

 

0.11

Non-cash share-based compensation

 

6,549

 

 

784

 

 

5,765

 

 

0.27

 

 

0.03

 

 

0.24

Adjusted (non-GAAP)

$

102,965

 

$

12,316

 

$

90,649

 

$

4.22

 

$

0.50

 

$

3.72

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

 

24,399

 
 

 

Three Months Ended November 30, 2020

 

Income

 

Diluted EPS

 

Before Tax

 

Tax

 

Net of Tax

 

Before Tax

 

Tax

 

Net of Tax

As reported (GAAP)

$

97,876

 

 

$

13,721

 

$

84,155

 

 

$

3.89

 

$

0.55

 

$

3.34

Restructuring charges

 

(12

)

 

 

 

 

(12

)

 

 

 

 

 

 

Subtotal

 

97,864

 

 

 

13,721

 

 

84,143

 

 

 

3.89

 

 

0.55

 

 

3.34

Amortization of intangible assets

 

4,501

 

 

 

204

 

 

4,297

 

 

 

0.18

 

 

0.01

 

 

0.17

Non-cash share-based compensation

 

6,739

 

 

 

403

 

 

6,336

 

 

 

0.27

 

 

0.02

 

 

0.25

Adjusted (non-GAAP)

$

109,104

 

 

$

14,328

 

$

94,776

 

 

$

4.33

 

$

0.57

 

$

3.76

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

 

25,192

 

Reconciliation of Non-GAAP Financial Measures – GAAP Income and Diluted EPS to

Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (6)

(Unaudited) (in thousands, except per share data)

 

 

Three Months Ended November 30, 2019

 

Income

 

Diluted EPS

 

Before Tax

 

Tax

 

Net of Tax

 

Before Tax

 

Tax

 

Net of Tax

As reported (GAAP)

$

76,594

 

$

7,895

 

$

68,699

 

$

3.02

 

$

0.31

 

$

2.71

Acquisition-related expenses

 

1,475

 

 

22

 

 

1,453

 

 

0.06

 

 

 

 

0.06

Restructuring charges

 

12

 

 

 

 

12

 

 

 

 

 

 

Subtotal

 

78,081

 

 

7,917

 

 

70,164

 

 

3.07

 

 

0.31

 

 

2.76

Amortization of intangible assets

 

4,790

 

 

252

 

 

4,538

 

 

0.19

 

 

0.01

 

 

0.18

Non-cash share-based compensation

 

4,758

 

 

343

 

 

4,415

 

 

0.19

 

 

0.01

 

 

0.17

Adjusted (non-GAAP)

$

87,629

 

$

8,512

 

$

79,117

 

$

3.45

 

$

0.34

 

$

3.12

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

 

25,396

 

Reconciliation of Non-GAAP Financial Measures – GAAP Income and Diluted EPS to

Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (6)

(Unaudited) (in thousands, except per share data)

 

 

Nine Months Ended November 30, 2022

 

Income

 

Diluted EPS

 

Before Tax

 

Tax

 

Net of Tax

 

Before Tax

 

Tax

 

Net of Tax

As reported (GAAP)

$

131,575

 

 

$

24,482

 

 

$

107,093

 

 

$

5.46

 

 

$

1.02

 

 

$

4.45

 

Acquisition-related expenses

 

2,784

 

 

 

2

 

 

 

2,782

 

 

 

0.12

 

 

 

 

 

 

0.12

 

EPA compliance costs

 

22,101

 

 

 

332

 

 

 

21,769

 

 

 

0.92

 

 

 

0.01

 

 

 

0.90

 

Gain from insurance recoveries

 

(9,676

)

 

 

(121

)

 

 

(9,555

)

 

 

(0.40

)

 

 

(0.01

)

 

 

(0.40

)

Restructuring charges

 

15,241

 

 

 

192

 

 

 

15,049

 

 

 

0.63

 

 

 

0.01

 

 

 

0.62

 

Subtotal

 

162,025

 

 

 

24,887

 

 

 

137,138

 

 

 

6.73

 

 

 

1.03

 

 

 

5.69

 

Amortization of intangible assets

 

13,662

 

 

 

1,581

 

 

 

12,081

 

 

 

0.57

 

 

 

0.07

 

 

 

0.50

 

Non-cash share-based compensation

 

32,055

 

 

 

2,128

 

 

 

29,927

 

 

 

1.33

 

 

 

0.09

 

 

 

1.24

 

Adjusted (non-GAAP)

$

207,742

 

 

$

28,596

 

 

$

179,146

 

 

$

8.63

 

 

$

1.19

 

 

$

7.44

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

 

24,086

 

 
 

 

Nine Months Ended November 30, 2021

 

Income

 

Diluted EPS

 

Before Tax

 

Tax

 

Net of Tax

 

Before Tax

 

Tax

 

Net of Tax

As reported (GAAP)

$

212,843

 

$

28,873

 

$

183,970

 

$

8.70

 

$

1.18

 

$

7.52

Acquisition-related expenses

 

1,605

 

 

58

 

 

1,547

 

 

0.07

 

 

 

 

0.06

EPA compliance costs

 

20,998

 

 

315

 

 

20,683

 

 

0.86

 

 

0.01

 

 

0.85

Restructuring charges

 

380

 

 

6

 

 

374

 

 

0.02

 

 

 

 

0.02

Subtotal

 

235,826

 

 

29,252

 

 

206,574

 

 

9.64

 

 

1.20

 

 

8.45

Amortization of intangible assets

 

8,963

 

 

603

 

 

8,360

 

 

0.37

 

 

0.02

 

 

0.34

Non-cash share-based compensation

 

28,349

 

 

2,355

 

 

25,994

 

 

1.16

 

 

0.10

 

 

1.06

Adjusted (non-GAAP)

$

273,138

 

$

32,210

 

$

240,928

 

$

11.17

 

$

1.32

 

$

9.85

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

 

24,461

 

 

Nine Months Ended November 30, 2020

 

Income

 

Diluted EPS

 

Before Tax

 

Tax

 

Net of Tax

 

Before Tax

 

Tax

 

Net of Tax

As reported (GAAP)

$

247,835

 

$

16,061

 

$

231,774

 

 

$

9.78

 

$

0.63

 

$

9.14

 

Restructuring charges

 

355

 

 

2

 

 

353

 

 

 

0.01

 

 

 

 

0.01

 

Tax reform

 

 

 

9,357

 

 

(9,357

)

 

 

 

 

0.37

 

 

(0.37

)

Subtotal

 

248,190

 

 

25,420

 

 

222,770

 

 

 

9.79

 

 

1.00

 

 

8.79

 

Amortization of intangible assets

 

13,527

 

 

651

 

 

12,876

 

 

 

0.53

 

 

0.03

 

 

0.51

 

Non-cash share-based compensation

 

20,654

 

 

1,406

 

 

19,248

 

 

 

0.82

 

 

0.06

 

 

0.76

 

Adjusted (non-GAAP)

$

282,371

 

$

27,477

 

$

254,894

 

 

$

11.14

 

$

1.08

 

$

10.05

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

 

25,350

 

 

Reconciliation of Non-GAAP Financial Measures – GAAP Income and Diluted EPS to

Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (6)

(Unaudited) (in thousands, except per share data)

 

 

Nine Months Ended November 30, 2019

 

Income

 

Diluted EPS

 

Before Tax

 

Tax

 

Net of Tax

 

Before Tax

 

Tax

 

Net of Tax

As reported (GAAP)

$

172,018

 

$

16,530

 

$

155,488

 

$

6.80

 

$

0.65

 

$

6.15

Acquisition-related expenses

 

1,475

 

 

22

 

 

1,453

 

 

0.06

 

 

 

 

0.06

Restructuring charges

 

1,061

 

 

68

 

 

993

 

 

0.04

 

 

 

 

0.04

Subtotal

 

174,554

 

 

16,620

 

 

157,934

 

 

6.90

 

 

0.66

 

 

6.24

Amortization of intangible assets

 

13,129

 

 

621

 

 

12,508

 

 

0.52

 

 

0.02

 

 

0.49

Non-cash share-based compensation

 

18,743

 

 

1,434

 

 

17,309

 

 

0.74

 

 

0.06

 

 

0.68

Adjusted (non-GAAP)

$

206,426

 

$

18,675

 

$

187,751

 

$

8.16

 

$

0.74

 

$

7.42

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted EPS

 

 

25,295

 

Consolidated Core and Non-Core Net Sales and Reconciliation of Non-GAAP Financial

Measures – Core and Non-Core Adjusted Diluted EPS (Non-GAAP) (3) (6)

(Unaudited) (in thousands, except per share data)

 

 

Three Months Ended November 30,

 

2022

 

2021

 

$ Change

 

% Change

Sales revenue, net

 

 

 

 

 

 

 

Core

$

558,606

 

$

620,509

 

$

(61,903

)

 

(10.0

) %

Non-Core

 

 

 

4,375

 

 

(4,375

)

 

(100.0

) %

Total

$

558,606

 

$

624,884

 

$

(66,278

)

 

(10.6

) %

 

 

Three Months Ended November 30,

 

2022

 

2021

 

$ Change

 

% Change

Adjusted Diluted EPS (non-GAAP)

 

 

 

 

 

 

 

Core

$

2.75

 

$

3.72

 

$

(0.97

)

 

(26.1

) %

Non-Core

 

 

 

 

 

 

 

%

Total

$

2.75

 

$

3.72

 

$

(0.97

)

 

(26.1

) %

 

 

Three Months Ended November 30,

Core Business:

2022

 

2021

Diluted EPS, as reported

$

2.15

 

 

$

3.10

Acquisition-related expenses, net of tax

 

 

 

 

0.06

EPA compliance costs, net of tax

 

0.09

 

 

 

0.20

Gain from insurance recoveries

 

(0.40

)

 

 

Restructuring charges, net of tax

 

0.43

 

 

 

Subtotal

 

2.27

 

 

 

3.36

Amortization of intangible assets, net of tax

 

0.17

 

 

 

0.11

Non-cash share-based compensation, net of tax

 

0.31

 

 

 

0.24

Adjusted Diluted EPS (non-GAAP)

$

2.75

 

 

$

3.72

 

 

Three Months Ended November 30,

Non-Core Business:

2022

 

2021

Diluted EPS, as reported

$

 

 

$

Adjusted Diluted EPS (non-GAAP)

$

 

 

$

 

 

 

 

Diluted EPS, as reported (GAAP)

$

2.15

 

 

$

3.10

 

Consolidated Core and Non-Core Net Sales and Reconciliation of Non-GAAP Financial

Measures – Core and Non-Core Adjusted Diluted EPS (Non-GAAP) (3) (6)

(Unaudited) (in thousands, except per share data)

 

 

Three Months Ended November 30,

 

2020

 

2019

Sales revenue, net

 

 

 

Core

$

617,766

 

$

450,742

Non-Core

 

19,971

 

 

23,995

Total

$

637,737

 

$

474,737

 

 

Three Months Ended November 30,

 

2020

 

2019

Adjusted Diluted EPS (non-GAAP)

 

 

 

Core

$

3.61

 

$

2.98

Non-Core

 

0.15

 

 

0.14

Total

$

3.76

 

$

3.12

 
 

 

Three Months Ended November 30,

Core Business:

2020

 

2019

Diluted EPS, as reported

$

3.19

 

$

2.62

Acquisition-related expenses, net of tax

 

 

 

0.06

Subtotal

 

3.19

 

 

2.68

Amortization of intangible assets, net of tax

 

0.17

 

 

0.13

Non-cash share-based compensation, net of tax

 

0.25

 

 

0.17

Adjusted Diluted EPS (non-GAAP)

$

3.61

 

$

2.98

 

 

Three Months Ended November 30,

Non-Core Business:

2020

 

2019

Diluted EPS, as reported

$

0.15

 

$

0.09

Amortization of intangible assets, net of tax

 

 

 

0.05

Non-cash share-based compensation, net of tax

 

 

 

Adjusted Diluted EPS (non-GAAP)

$

0.15

 

$

0.14

 

 

 

 

Diluted EPS, as reported (GAAP)

$

3.34

 

$

2.71

 

Consolidated Core and Non-Core Net Sales and Reconciliation of Non-GAAP Financial

Measures – Core and Non-Core Adjusted Diluted EPS (Non-GAAP) (3) (6)

(Unaudited) (in thousands, except per share data)

 

 

Nine Months Ended November 30,

 

2022

 

2021

 

$ Change

 

% Change

Sales revenue, net

 

 

 

 

 

 

 

Core

$

1,588,084

 

$

1,611,098

 

$

(23,014

)

 

(1.4

) %

Non-Core

 

 

 

30,237

 

 

(30,237

)

 

(100.0

) %

Total

$

1,588,084

 

$

1,641,335

 

$

(53,251

)

 

(3.2

) %

 
 

 

Nine Months Ended November 30,

 

2022

 

2021

 

$ Change

 

% Change

Adjusted Diluted EPS (non-GAAP)

 

 

 

 

 

 

 

Core

$

7.44

 

$

9.67

 

$

(2.23

)

 

(23.1

) %

Non-Core

 

 

 

0.18

 

 

(0.18

)

 

(100.0

) %

Total

$

7.44

 

$

9.85

 

$

(2.41

)

 

(24.5

) %

 

 

Nine Months Ended November 30,

Core Business:

2022

 

2021

Diluted EPS, as reported

$

4.45

 

 

$

7.35

Acquisition-related expenses, net of tax

 

0.12

 

 

 

0.06

EPA compliance costs, net of tax

 

0.90

 

 

 

0.85

Gain from insurance recoveries

 

(0.40

)

 

 

Restructuring charges, net of tax

 

0.62

 

 

 

0.02

Subtotal

 

5.69

 

 

 

8.28

Amortization of intangible assets, net of tax

 

0.50

 

 

 

0.34

Non-cash share-based compensation, net of tax

 

1.24

 

 

 

1.05

Adjusted Diluted EPS (non-GAAP)

$

7.44

 

 

$

9.67

 

 

Nine Months Ended November 30,

Non-Core Business:

2022

 

2021

Diluted EPS, as reported

$

 

 

$

0.17

Non-cash share-based compensation, net of tax

 

 

 

 

0.01

Adjusted Diluted EPS (non-GAAP)

$

 

 

$

0.18

 

 

 

 

Diluted EPS, as reported (GAAP)

$

4.45

 

 

$

7.52

 

Consolidated Core and Non-Core Net Sales and Reconciliation of Non-GAAP Financial

Measures – Core and Non-Core Adjusted Diluted EPS (Non-GAAP) (3) (6)

(Unaudited) (in thousands, except per share data)

 

 

Nine Months Ended November 30,

 

2020

 

2019

Sales revenue, net

 

 

 

Core

$

1,526,995

 

$

1,193,454

Non-core

 

62,429

 

 

71,613

Total

$

1,589,424

 

$

1,265,067

 

Nine Months Ended November 30,

 

2020

 

2019

Adjusted Diluted EPS (non-GAAP)

 

 

 

Core

$

9.58

 

$

6.98

Non-core

 

0.47

 

 

0.44

Total

$

10.05

 

$

7.42

 

 

Nine Months Ended November 30,

Core Business:

2020

 

2019

Diluted EPS, as reported

$

8.67

 

 

$

5.85

Acquisition-related expenses, net of tax

 

 

 

 

0.06

Restructuring charges, net of tax

 

0.01

 

 

 

0.02

Tax Reform

 

(0.37

)

 

 

Subtotal

 

8.31

 

 

 

5.93

Amortization of intangible assets, net of tax

 

0.51

 

 

 

0.38

Non-cash share-based compensation, net of tax

 

0.76

 

 

 

0.67

Adjusted Diluted EPS (non-GAAP)

$

9.58

 

 

$

6.98

 

 

Nine Months Ended November 30,

Non-Core Business:

2020

 

2019

Diluted EPS, as reported

$

0.47

 

 

$

0.30

Restructuring charges, net of tax

 

 

 

 

0.01

Subtotal

 

0.47

 

 

 

0.31

Amortization of intangible assets, net of tax

 

 

 

 

0.12

Non-cash share-based compensation, net of tax

 

 

 

 

0.01

Adjusted Diluted EPS (non-GAAP)

$

0.47

 

 

$

0.44

 

 

 

 

Diluted EPS, as reported (GAAP)

$

9.14

 

 

$

6.15

 

Selected Consolidated Balance Sheet, Cash Flow and Liquidity Information

(Unaudited) (in thousands)

 

 

November 30,

 

2022

 

2021

Balance Sheet:

 

 

 

Cash and cash equivalents

$

45,337

 

$

44,344

Receivables, net

 

505,555

 

 

505,933

Inventory

 

536,793

 

 

585,811

Assets held for sale

 

 

 

2,265

Total assets, current

 

1,122,401

 

 

1,164,989

Total assets

 

3,129,425

 

 

2,487,405

Total liabilities, current

 

522,702

 

 

625,308

Total long-term liabilities